How do realtors accept bids? Are they only accepting the lowest bids?

Asked by Anna, Detroit, MI Thu Mar 12, 2009

We are not getting nearly as many bids accepted as 10 months ago. Why?

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Tony Grech, Mortgage Broker Or Lender, Southfield, MI
Fri Mar 13, 2009
In order to be approved by a bank to list their foreclosed properties, a realtor has to agree to take care of certain upkeep on the homes, such as trash outs, winterization,locks, etc. A realtor would normally look to develop relationships with vendors to take care of this work. I doubt that it's as simple as "only accepting the lowest bid".

I would recommend you work on developing your relationships with these agents or brokers. Get to know them, ask a lot of questions to find out the most common problems they are facing, so that you can find out their exact needs and how to ADD VALUE to the transaction.

At the end of the day, for some realtors it WILL be primarily price driven. For some it will be VALUE driven though. My point is that if you invest the time to develop a deeper relationship with these folks you can determine which category they fall into and you can accomplish two things:

A) you can gain a better understanding of what combination of price and value it will take to attract more business AND
B) you can decide whether you want to continue to pursue those customers who are just price price price or whether you want to drop them and focus your efforts on the relationships that actually make you money

Anna, even though you may consider yourself hired labor google Jeffrey Gitomer. He writes a lot of stuff on the subject and I find it very relevant.

Hope this helps!
1 vote
Anna, , Detroit, MI
Thu Mar 12, 2009

I should have clarified. I'm wondering how realtors accept vendor bids to do work on the home--such as securing doors and windows, winterizations, etc.
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Andy Hargrea…, Agent, Plymouth, MI
Thu Mar 12, 2009
We're required to follow certain codes and descriptions placed upon us when getting offers. In many cases, it depends on the offer and also why type of sale it is.

As I've said before, the highest offer isn't necessarily the "best offer" to a bank. The "best" offer is often the least risky and so forth.

Looking over some of the criteria my clients use for determination of the best offer -- they're focusing in on obviously net sales price, concessions, EMD, etc.

Yet, it's also our job to help guide our sellers to make the most responsible decision for them.

If you can provide additional insight we can elaborate.
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